NetApp Earnings Preview: Weakness In Product Sales Likely To Hinder Top Line Growth

The company has seen weakness in its core storage business over the last few quarters, with revenues falling by 25% y-o-y to $664 million in the most recent quarter. As a result, net revenues were down by 10% year-over-year to $1.3 billion. Weakness in the storage hardware business is expected to continue over the next few quarters, due to which NetApp's management expects Q2'16 revenues to be around $1.4-$1.5 billion, which at the midpoint of guidance implies a 6% year-over-year decline. The co...